Construction giant Lendlease has slammed accounting firm KPMG over claims confidential client documents were misused, as a parliamentary hearing into the scandal is held on Friday.A KPMG whistleblower raised concerns with the firm’s senior leadership team in 2024 that confidential board papers from Lendlease were stolen and used to pitch for, and win, audit contracts from other firms such as Westpac and Dexus.More than a dozen current and former KPMG partners, as well as clients, lawyers and regulators, will front a parliamentary joint committee on Friday into the scandal, which has resulted in the resignation of several senior leaders and the corporate watchdog launching proceedings into the firm’s conduct.Lendlease chair John Gillam told the hearing KPMG’s response to the incident was “piecemeal” and “sporadic” and said the company had to fork out additional costs.“We’re working through disruption and additional costs and that is frustrating,” Mr Gillam said.“There are thousands of good people in KPMG … and what’s apparent is a few senior people have had a grave misuse of the access privileges they have and it’s a fundamental breach of trust.”Chief executive Tony Lombardo said KPMG made “poor judgment” and they will not use the firm to audit contracts again.“It is a very disappointing set of circumstances,” Mr Lombardo said.Meanwhile, accounting body Chartered Accounts Australia and New Zealand (CAANZ) was grilled by Labor senator Deborah O’Neill over a phone with KPMG chief executive Andrew Yates when the scandal first came to light.Mr Yates and audit partner Julian McPherson resigned from their roles in May over the handling of the allegations. Chief operating officer Eileen Hoggett was also demoted from her role.Senator O’Neill pressed CAANZ executives over the tone of the phone call, whether they emphasised the seriousness of the claims, and if they had asked Mr Yates to provide documents and evidence of the claims.CAANZ group executive Vanessa Chapman said they raised the “extraordinary nature” of the claims with Mr Yates.CAANZ chief executive Ainslie van Onselen said she was extremely concerned at the conduct of KPMG and that the confidentiality of clients should not be exploited.“It’s extremely serious conduct and I’m disgusted by it,” she told the hearing.“Basic confidentiality of documents is 101 stuff. ... Every young accountant in the country has it drummed into them to respect your client’s confidentiality.”An internal investigation into the matter did not verify the whistleblower’s claims, and a further external investigation by legal firm Ashurst supported the initial outcome.However, a different external law firm, Allens, was appointed to undertake another investigation into the claims after the whistleblower raised further complaints. That investigation is ongoing and has already uncovered other cases of inappropriate document handling. More to come